Updated: May 2026How to insure a new business starts with identifying the risks your business faces, then matching those risks to the right insurance types. For many new businesses, this may include Public Liability Insurance, Property and Tools Insurance, Business Package Insurance, Commercial Vehicle Insurance, Personal Accident and Illness Insurance, Professional Indemnity Insurance, Workers Compensation Insurance and other cover depending on the work performed.
New business insurance should not be treated as a last-minute admin task. The right insurance setup can help a new business meet client requirements, access worksites, sign leases, protect assets and manage financial exposure if something goes wrong. Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance.
Quick Summary
- New business insurance should be based on your business activities, contracts, equipment, staff, vehicles and legal requirements.
- Public Liability Insurance is commonly required when your business works with clients, customers, suppliers, contractors or members of the public.
- Property and Tools Insurance can help cover business assets such as tools, stock, machinery, office equipment and portable equipment where included under the policy.
- Professional Indemnity Insurance may be relevant if your business provides advice, design, consulting, reporting or other professional services.
- Workers Compensation Insurance requirements vary by state and territory. All Trades Cover can only offer Workers Compensation Insurance in WA due to licensing restrictions.
- A broker can help compare policy options, review contract requirements and issue Certificates of Currency where available.
What New Business Insurance Means
New business insurance is not one single policy. It is usually a group of insurance policies selected to match the risks of your business.
For example, a new electrician may need Public Liability Insurance, Tools Insurance, Commercial Vehicle Insurance and Personal Accident and Illness Insurance. A new consulting business may need Professional Indemnity Insurance, Cyber Insurance and Public Liability Insurance. A new builder may need Public Liability Insurance, Contract Works Insurance, Tools Insurance and Workers Compensation Insurance if employees are involved.
The right mix depends on what your business does, where you work, who you work for, whether you employ staff, what assets you own and what your contracts require.
Step 1: Understand Your Business Risks
The first step in how to insure a new business is to define what could realistically go wrong in your day-to-day operations.
Consider the following questions:
- Do clients, suppliers or members of the public visit your workplace?
- Do you visit client homes, commercial sites, construction sites or mine sites?
- Could your work cause injury to another person?
- Could your work damage someone else’s property?
- Do you provide professional advice, reports, plans, specifications or designs?
- Do you own tools, machinery, stock, computers, vehicles or specialist equipment?
- Do you employ workers, apprentices, labour hire staff or subcontractors?
- Do your contracts require specific insurance limits or endorsements?
- Would your business keep operating if your premises, tools, stock or vehicles were damaged?
- Would you still earn income if you were unable to work for a period of time?
These answers help shape the cover types that may be relevant. A business insurance package should be built around real operating risks, not a generic checklist.
Step 2: Check Your Contract and Licence Requirements
Before arranging insurance, check whether your clients, landlord, regulator, builder, principal contractor or industry body requires specific cover.
Many new businesses need insurance because a third party requires it before work can start. This is common for trades, construction, mining, maintenance, professional services, commercial leases and government contracts.
Common requirements may include:
- Public Liability Insurance with a set limit, such as $5 million, $10 million or $20 million
- Professional Indemnity Insurance for advice, design or consulting work
- Contract Works Insurance for building or construction projects
- Workers Compensation Insurance where employees are engaged
- Commercial Vehicle Insurance for business vehicles
- Plant and Machinery Insurance for earthmoving, civil or site equipment
- Cyber Insurance for businesses that hold client data or rely on digital systems
- Certificates of Currency before site access, lease approval or contract signing
If a contract has insurance clauses, it is worth having them reviewed before buying a policy. Some contracts require specific wording, interested parties, waivers of subrogation, principal indemnity clauses or higher limits. These are not automatically included in every policy.
Step 3: Choose the Insurance Types That Match Your Business
Different businesses need different policies. A new business owner should choose cover based on business activity, contract requirements, assets, people and revenue exposure.
Public Liability Insurance
Public Liability Insurance can help cover legal costs and compensation claims if your business is alleged to have caused injury to another person or damage to third-party property.
This cover is commonly used by:
- Tradies and subcontractors
- Builders and construction businesses
- Cleaning and maintenance businesses
- Retail and hospitality businesses
- Consultants who visit client sites
- Businesses that interact with customers, suppliers or members of the public
Public Liability Insurance is often requested before a contractor can enter a worksite, sign a contract, lease premises or perform work for a commercial client. Cover depends on the policy wording, insured activities, limits and exclusions.
Property and Tools Insurance
Property and Tools Insurance can help cover business assets such as tools, portable equipment, stock, office contents, computers and other insured property where included under the policy.
This may be relevant if your new business owns:
- Hand tools and power tools
- Laptops, tablets and office equipment
- Stock, materials or inventory
- Specialist trade equipment
- Furniture, fixtures and fittings
- Portable equipment taken between sites
Policies vary significantly. Some policies may only cover tools at a listed location, while others may include portable cover, theft cover or specified items. Exclusions, storage conditions and proof of ownership requirements should be checked.
Business Package Insurance
Business Package Insurance combines several business insurance sections under one policy. It may include property, theft, glass, business interruption, public liability, money, machinery breakdown or other selected covers.
This type of policy may suit businesses that operate from a shop, office, warehouse, workshop or commercial premises.
For example, a new cabinet-making business may need cover for tools, stock, machinery, office equipment, glass, property damage and Public Liability Insurance. A business package may bring several of those covers into one policy, depending on what is selected and accepted by the insurer.
Business Interruption Insurance
Business Interruption Insurance can help cover lost income and certain ongoing expenses if your business is interrupted by an insured event, such as fire, storm or other property damage covered by the policy.
This cover may help with expenses such as:
- Lost gross profit or revenue, depending on the policy basis
- Rent or lease costs
- Wages for key staff
- Temporary relocation costs where included
- Other fixed operating expenses listed in the policy
Business Interruption Insurance does not respond to every slowdown, cash flow issue or business disruption. It generally needs to be linked to an insured event under the policy. The indemnity period, insured amount and policy wording need careful review.
Personal Accident and Illness Insurance
Personal Accident and Illness Insurance can help provide a weekly benefit if an insured person is unable to work due to an eligible accident or illness, subject to the policy terms.
This may be relevant for sole traders, working directors and business owners who rely on their own labour to generate income.
For example, if a sole trader carpenter cannot work after an injury, the business may lose income quickly. Personal Accident and Illness Insurance may help support income while the person recovers, subject to waiting periods, benefit periods, exclusions and insurer assessment.
Professional Indemnity Insurance
Professional Indemnity Insurance can help cover claims connected to professional advice, design, consulting, reporting or services where a client alleges financial loss due to an error, omission or breach of professional duty.
This cover may be relevant for:
- Consultants
- Engineers
- Designers
- Drafting businesses
- Project managers
- Building consultants
- IT and technology providers
- Professional service businesses
Professional Indemnity Insurance is different from Public Liability Insurance. Public Liability Insurance generally responds to third-party injury or property damage. Professional Indemnity Insurance generally responds to claims connected to advice, design or professional services.
Commercial Vehicle Insurance
Commercial Vehicle Insurance can help cover business vehicles such as utes, vans, trucks and other registered vehicles used for work.
This may be relevant if your business uses vehicles to:
- Travel between job sites
- Transport tools, equipment or materials
- Deliver goods
- Carry staff or subcontractors
- Perform mobile services
Business owners should check whether private-use vehicle insurance is suitable for commercial use. A claim may be affected if the vehicle is insured incorrectly or used outside the disclosed purpose.
Contract Works Insurance
Contract Works Insurance can help cover building or construction works in progress against insured events such as fire, storm, theft, vandalism or accidental damage, depending on the policy.
This cover may be relevant for builders, contractors and businesses responsible for construction projects, renovations, fit-outs or structural works.
Contract Works Insurance should be reviewed before each project. The contract value, project duration, site conditions, principal-supplied materials, subcontractors and defects obligations may all affect policy structure.
Plant and Machinery Insurance
Plant and Machinery Insurance can help cover mobile plant, machinery and equipment used in construction, mining, civil and trade work.
This may apply to equipment such as:
- Excavators
- Skid steers
- Loaders
- Forklifts
- Mobile cranes
- Compressors
- Generators
- Other site-based machinery
Plant and Machinery Insurance should be structured around how the equipment is used, where it operates, whether it is hired out, whether it travels on public roads and whether dry hire or wet hire is involved.
Workers Compensation Insurance
Workers Compensation Insurance is generally required when a business employs workers. Requirements vary by state and territory, and the right setup depends on where work is performed, how the workforce is structured and whether the business uses employees, apprentices, working directors, labour hire or subcontractors.
All Trades Cover can only offer Workers Compensation Insurance in WA due to licensing restrictions. Businesses operating outside WA should check the relevant state or territory workers compensation authority.
Workers Compensation Insurance is different from Personal Accident and Illness Insurance. Workers Compensation Insurance is designed for employees and statutory obligations. Personal Accident and Illness Insurance may be considered by sole traders, working directors and self-employed business owners who are not covered as workers under a workers compensation scheme.
Management Liability Insurance
Management Liability Insurance can help cover claims connected to how a business is managed, rather than the work itself.
This may become more relevant as a new business grows, employs staff, manages workplace responsibilities, takes on directors or handles more formal business operations.
Cover may include sections such as:
- Directors and Officers Liability
- Employment Practices Liability
- Statutory Liability
- Crime cover
- Tax audit costs where available
Management Liability Insurance is generally more relevant for businesses with employees, directors, management responsibilities or a growing operational footprint.
Cyber Insurance
Cyber Insurance can help cover certain costs connected to cyber incidents, data breaches, ransomware, business interruption and recovery expenses, depending on the policy.
This may be relevant if your new business:
- Stores client data
- Uses online booking or payment systems
- Relies on email, cloud software or accounting platforms
- Handles sensitive commercial information
- Runs an eCommerce website
- Uses payroll, invoicing or client management software
Cyber risk is not limited to large businesses. Small businesses can also be affected by email compromise, invoice fraud, malware and data loss.
Step 4: Decide on Cover Limits
Cover limits should be based on the type of work performed, contract requirements, business size, assets, project values and the possible scale of a claim.
For Public Liability Insurance, many contracts request limits such as:
- $5 million
- $10 million
- $20 million
The right limit depends on what your business does and what your clients require. Higher-risk industries, commercial sites, government work, mining work and larger construction projects often require higher limits.
For property, tools, vehicles and plant, insured values should reflect realistic replacement costs. Underinsuring equipment may create problems at claim time, while overinsuring can increase premiums unnecessarily.
Step 5: Compare Policy Terms, Not Just Price
Price matters for a new business, but the cheapest policy may not provide the cover needed for your work, contracts or assets.
When comparing policies, review:
- What business activities are insured
- Policy limits and sub-limits
- Exclusions
- Excesses
- Territorial limits
- Contractual liability conditions
- Tool and equipment storage conditions
- Subcontractor conditions
- Claims process requirements
- Whether Certificates of Currency can be issued quickly
A policy should be assessed for fit, not just cost. A low premium may not help if the policy does not align with your contracts, work type or insurer disclosure requirements.
Step 6: Get Your Certificate of Currency
A Certificate of Currency is often needed once a policy has been arranged. It confirms that the policy is current at the date the certificate is issued.
New businesses may need a Certificate of Currency for:
- Site access
- Tender submissions
- Commercial leases
- Client onboarding
- Contract approval
- Finance approval
- Work health and safety prequalification
- Council permits
Some clients require the certificate to show specific limits, insured activities or interested parties. These requests should be checked before the certificate is sent, as insurer approval may be needed.
Step 7: Review Your Cover as the Business Changes
New businesses can change quickly. Insurance should be reviewed whenever your business structure, work type, contracts, assets or workforce changes.
Review your cover when you:
- Start a new contract
- Hire employees or apprentices
- Use subcontractors
- Buy new tools, vehicles, plant or machinery
- Move into a new premises
- Add a new service
- Increase turnover
- Start working in another state or territory
- Take on higher-value projects
- Receive a contract with new insurance clauses
- Begin working on commercial, government, mining or civil sites
Insurance that suited your business on day one may not suit the business six months later. A broker can help review changes and request policy updates where available and accepted by the insurer.
Common Insurance Mistakes New Businesses Make
New business owners often arrange insurance quickly, especially when a client needs proof of cover. That can create gaps if the policy is not properly matched to the business.
Common mistakes include:
- Buying Public Liability Insurance without checking contract limits
- Insuring the wrong legal entity
- Not listing the correct business activities
- Assuming subcontractors are covered automatically
- Using private car insurance for business vehicle use
- Not insuring tools, plant or portable equipment correctly
- Forgetting to update cover after buying new equipment
- Not checking whether Professional Indemnity Insurance is needed
- Assuming Workers Compensation Insurance works the same in every state
- Not keeping Certificates of Currency up to date
These issues can delay work, affect claims or create problems with clients. Clear disclosure and regular reviews help reduce avoidable insurance issues.
How Much Does It Cost to Insure a New Business?
The cost to insure a new business depends on the business type, industry, turnover, staff, assets, vehicles, location, contract requirements and selected cover limits.
Premiums may be affected by:
- The work performed
- The risk level of the industry
- Annual turnover
- Number of employees and subcontractors
- Business location
- Claims history
- Value of tools, stock, plant or equipment
- Vehicle type and usage
- Professional services provided
- Required policy limits
- Optional extensions or endorsements
A low-risk office-based business may have different insurance needs from a builder, electrician, landscaper, earthmoving contractor or mining services business. The most accurate way to understand cost is to provide your broker with clear business details and any contract requirements.
How All Trades Cover Can Help New Businesses
All Trades Cover works with tradies, contractors, builders, plant operators, mining businesses and SMEs that need practical insurance support.
For new businesses, we can help with:
- Identifying the insurance types commonly used by your industry
- Reviewing contract insurance requirements
- Comparing policy options from Australian trade and construction insurers
- Arranging Certificates of Currency where available
- Structuring cover around your trade, tools, vehicles, contracts and workforce
- Updating cover as your business grows or changes
- Supporting clients through the claims process
The process is designed to be straightforward. You provide your business details, trade or industry, and the cover you need. Our team reviews the information, compares available options and helps you understand the policy choices available. Once cover is arranged, policy documents and Certificates of Currency can be issued where available.
Frequently Asked Questions
What Insurance Does a New Business Need?
A new business may need Public Liability Insurance, Property and Tools Insurance, Business Package Insurance, Commercial Vehicle Insurance, Professional Indemnity Insurance, Personal Accident and Illness Insurance, Workers Compensation Insurance or other cover depending on the business activity and contracts.
Is Public Liability Insurance Required for a New Business?
Public Liability Insurance is not required for every business by law, but it is commonly required by clients, builders, landlords, councils, site managers and contract terms. Some trades and licensed activities may also have specific insurance requirements.
Do I Need Insurance Before I Start Trading?
Many new businesses arrange insurance before trading, signing contracts, entering worksites, leasing premises or dealing with customers. Waiting until after work starts may create gaps or delays if a client requests proof of cover.
Can I Insure a Business Before I Have Customers?
Yes, a business can often arrange insurance before it has customers, depending on the policy and insurer. You may need to provide expected turnover, planned activities, business structure and start date.
Do Sole Traders Need Business Insurance?
Sole traders may need business insurance if they work with clients, visit sites, use tools, provide advice, own business assets or need to meet contract requirements. The right cover depends on the work performed and the risks involved.
What Is the Difference Between Public Liability Insurance and Professional Indemnity Insurance?
Public Liability Insurance generally responds to third-party injury or property damage claims. Professional Indemnity Insurance generally responds to claims connected to advice, design, consulting, reporting or professional services.
Does Business Insurance Cover My Tools?
Tools are not automatically covered under every business insurance policy. You may need Property and Tools Insurance or a business package with portable equipment cover. Storage conditions, limits and exclusions should be checked.
Do I Need Workers Compensation Insurance for a New Business?
Workers Compensation Insurance is generally required when a business employs workers, but rules vary by state and territory. All Trades Cover can only offer Workers Compensation Insurance in WA due to licensing restrictions.
Can I Add Insurance Later as My Business Grows?
Yes, cover can often be updated as your business grows, subject to insurer approval. You should review your insurance when you hire staff, buy equipment, take on larger contracts, move premises or change business activities.
How Do I Get Proof of Insurance for a New Business?
Proof of insurance is usually provided through a Certificate of Currency. This can generally be issued once the policy is arranged and confirmed. Some clients may require specific wording or limits on the certificate.
Speak to a Broker About Insuring Your New Business
If you are setting up a new business, All Trades Cover can help you understand the insurance options that may be relevant to your trade, contract requirements, assets and business structure.
You can request a quote through our online quote form, review common cover types through our insurance options, or contact our team to discuss your new business insurance requirements.
General Advice Warning: This information is general only and does not take into account your objectives, financial situation or needs. Cover is subject to policy terms, conditions, limits, exclusions and insurer acceptance. Before deciding whether a policy is suitable, read the relevant policy wording and consider whether the cover meets your circumstances.
